Ferrari unveiled the Ferrari Luce electric vehicle in the symbolic setting of the Vala di Calatrava, Città dello Sport in Rome in May 2026. (Ferrari Spa)
Ferrari Spa
luxury car maker shares ferrari The sharp decline Tuesday came shortly after the company launched its first fully electric vehicle.
The Maranello, Italy-based sports car maker unveiled the Luce, which translates to “light”, at a venue in Rome, and described the choice of name as “evoking clarity and direction”.
The much-awaited model is a departure from the typical Ferrari aesthetic and comes at a time when other luxury carmakers, notably Porsche and Lamborghini, have withdrawn plans to launch EVs of their own due to weak demand.
Ferrari shares fell about 8% in Milan, while US-listed shares fell about 4%. The Milan-listed stock is down more than 32% in the last 12 months.
Ferrari CEO Benedetto Vigna described the launch of the Lucerne model as a “very, very important day” for the company, marking the opening of “a new chapter” in its history.
Asked if the company can satisfy both new customers and its typical customers, Vigna told CNBC’s Charlotte Reed, “Look, when you do any new technology, you always have to keep in mind one word called respect.”
“Respect the technology, because when you have a new technology, you need to make sure that that technology is properly reflected in the design, so the design has to be different,” he said.
Vigna said the carmaker also respects the different needs and desires of its customers, adding that existing customers will be interested in the Luce and the company will welcome new buyers for the fully electric model.
Ferrari’s first five-seat car, the Luce model could accelerate to 60 mph in approximately 2.5 seconds and had a top speed of approximately 192 mph.
The Luce is priced at around 550,000 euros (about $640,000), with customer deliveries scheduled to begin in the fourth quarter of the year.
Ferrari said it has decided to develop and manufacture all components in Maranello, while design work has been entrusted to LoveFrom, the agency founded by former Apple design chief Jony Ive.
Why are shares falling?
Analysts attributed the share price reaction to a mixture of “design hate” and the classic market adage of “travel and reach”, noting that Ferrari’s share price had risen significantly ahead of Monday’s launch.
“Ultimately, many fans are disappointed that Ferrari is embracing the EV concept, believing it undermines the supercar brand, which has built itself around classic design and raw, combustion-engine power,” Michael Field, chief equity strategist at Morningstar, told CNBC by email.
“From an investment perspective, many investors had anticipated the development of EV models, on the basis that the research and development costs are significantly higher, which would put too much pressure on brands to recoup them, and potentially reduce investment returns for the business,” Fields said.
Anthony Dick, an auto analyst at Oddo BHF, said the stock price reaction was “the sharpest reaction we’ve ever seen to a car design – the market has spoken.”
Considering market concerns and business risks if the launch of Ferrari’s new model fails, Dick cited the impact on brand equity, describing Loos as “the farthest deviation from the ethos of the brand we have ever seen” and the potential impact on profitability if the model does not actually sell.
Ferrari’s Vigna said the Luce model would provide Ferrari drivers with “the same sensation” as a normal model, but the car’s most important sound was linked to an electric engine and “each engine has its own sound.”
“What’s important is the feeling [being given] To the driver,” he added.
